Capital Group caps operating expenses at zero on four funds

The cap will save up to 0.15% on each vehicle

US fund giant Capital Group is set to cap operating expenses at zero across four of its Luxembourg-domiciled funds in a move to lower the total expense ratio (TER).

The zero cap will save investors up to 0.15% on each RDR-compliant share class for a period of 12 months from 1 February 2017. The changes will apply to the Capital Group World Dividend Growers, Capital Group Euro Corporate Bond, Capital Group Emerging Markets Local Currency Debt and Capital Group Global Allocation funds, all domiciled in Luxembourg. Capital Group continues European push with New World UCITS launch The firm said the change was made to help investors overcome the stigma of investing in small funds as fixed costs such as operating expenses can have a big impact on th...